UberEATS, Zomato are racing to buy Runnr

Picture source: ThinkStockThe domestic online food-delivery space is likely to see another big consolidation move play out. UberEATS and Zomato have put in a bid to acquire food-delivery and logistics startup Runnr, three people familiar with the matter told TOI. While the UberEATS offer values the Bengaluru-based Runnr at $50 million, Zomato has pegged the valuation at $30 million, sources said.

Runnr was formed after the merger of two of the most highprofile and well-funded startups of 2015 -hyperlocal logistics Roadrunnr and food-delivery venture TinyOwl. "They are also in the midst of discussions with financial investors for a $6-10 million funding round," another person privy to the matter said.

There are three options on the table, but a decision is yet to be made. Both UberEAST and Zomato have put in a term sheet at different valuations. There may be a chance that the financing round may go through for now as the board decided not to go for a complete sale, a person close to the matter said on the condition of anonymity. A term sheet is a non-binding agreement for a potential investment.

Runnr started off afresh last year as a consumer-facing food delivery firm, and was competing with the likes of Swiggy, Zomato and Foodpanda. It recently shuttered its consumer-facing business and has gone back to being a logistics company , which is now delivering for other food-delivery players. Mohit Kumar, co-founder & CEO, Runnr, did not respond to an emailed query . Emails and text messages sent to a Zomato spokesperson did not elicit a response while an Uber spokesperson replied, "This is baseless speculation."